By Allen Sykora
(8-31-10, Kitco News)– “It is probably only a question of time” before gold returns to the record highs from June, says a research note from Commerzbank.
For starters, the festival season has begun in the key consuming nation of India, during which time gold is traditionally given as gifts.
“Secondly, the debt crisis in Europe has returned to the focus of market players again,” Commerzbank says. The bond and other markets are pricing in a “higher default probability for Greek government bonds and an even greater probability of the rescue action for Greece failing,” Commerzbank says. “Given this news, gold should remain in strong demand as a ‘safe haven,’ even if the gold holdings of the SPDR Gold Trust have stagnated lately.”
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